Bloomberg just got slammed for exploiting a trading data loophole

pulse

April 27, 2017 6:24 PM

First Bloomberg took a shot at the New York Stock Exchange. Now is getting return fire.

First Bloomberg took a shot at the New York Stock Exchange. Now it's facing return fire.

The clarification relates to what's called "top of book" data, which is considered essential for trading, and Bloomberg's Server Application Program Interface

"As Bloomberg admitted, the Bloomberg SAPI allows data recipients to “view and download market data” and “run server-based applications on the market data.” As such, those data recipients making use of the Bloomberg SAPI are getting functionally the same product as those purchasing a data feed from another vendor or directly from CTA, but at a fraction of the cost. "

The letter from the CTA plan follows an earlier admission from Thomson Reuters, which competes with Bloomberg. It said that it "fully supports" the amendment, saying it was a "clarification that is critically needed in order to level the playing field in the United States for equity exchange data." It added:

"Thomson Reuters believes that fees for US equity market data are not currently being applied in an even manner, benefiting some clients over others. This Amendment clarifies how the fees should be applied and should allow the administrators of the exchange data to apply the fees equally so that all clients pay the same price for the same service. Without this clarification, the industry will continue to operate in an inequitable way."

This one could drag on for a while.

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